The Justice Department is urging a bankruptcy judge to limit a creditor probe of OxyContin maker Purdue Pharma LP into the billions of dollars in profits collected by the Sackler family members who own the company, WSJ Pro Bankruptcy reported. Justice Department lawyers said in a court document filed Monday that Purdue and the Sackler family members shouldn’t have to turn over information supplied to the government during its own investigation into the drugmaker because that could deter targets of other criminal and civil probes from engaging in “full and frank discussions” with prosecutors. Purdue turned to chapter 11 last year in hopes of resolving thousands of lawsuits filed by states and municipalities accusing the company of fueling widespread opioid addiction. Other drugmakers, distributors and retail pharmacies have also been targeted in litigation seeking to recoup communities costs’ from opioid misuse. Government investigations into Purdue are close to being resolved under a settlement that could be announced as soon as today. But as part of Purdue’s bankruptcy, an official creditors committee is also conducting a probe into the drugmaker, its owners and its alleged role in creating and escalating the opioid crisis. The company’s creditors include state and local governments, Native American tribal authorities, hospitals and others looking to recoup the costs of drug addiction. The creditors' committee has accused Sackler family members of holding back documents, including disclosures made to the Justice Department during negotiations to resolve the years-long criminal and civil investigations into the company.
